GST Reset Brews Bigger Bites: Britannia Predicts Market Shift Toward FMCG Giants

GST reform and its ripple effect  
Britannia Industries has projected a strategic shift in India’s fast-moving consumer goods (FMCG) sector following the GST Council’s recent rate reset. Managing Director Varun Berry stated that the revised slabs—moving most food and beverage items to the 5 percent bracket—will benefit organised players and accelerate market share gains for industry leaders.

Key highlights:

• 85 percent of Britannia’s portfolio was impacted by the GST rate change, prompting price and grammage adjustments  
• The company increased pack sizes by 10–13 percent in low-unit SKUs (₹5 and ₹10 packs) to pass on benefits to consumers  
• Berry expects the destocking impact from September to normalize by the October–December quarter  
• Rural markets continue to outperform urban regions, driving demand for value brands like Tiger biscuits  
• The GST reset is seen as a catalyst for formalisation, favouring companies with scale, distribution, and compliance strength  

Strategic outlook  
Britannia anticipates stronger volume growth in H2 FY26 and plans to expand into new categories like ready-to-drink protein beverages. The company’s bullish stance reflects confidence in regulatory tailwinds and consumer-centric innovation.

Sources: Economic Times, Financial Express, Business Standard, AxisDirect